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LTCG on sale of listed equity shared in sched 112A?

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This discussion addresses queries regarding Long Term Capital Gains (LTCG) on the sale of listed equity shares, specifically concerning Schedule 112A in ITR-2 for AY 2021-22. It clarifies that LTCG below Rs. 1 lakh is included in total income for tax computation purposes, even if tax isn't levied on it directly, and highlights the importance of filling Schedule SI. The thread also delves into complex scenarios like M&A, explaining how to input data for shares acquired before January 31, 2018, and the subsequent sale after a merger, addressing the calculation of cost of acquisition and Fair Market Value (FMV).

Acche Din

49 Points Posted on 12 September 2021

Imagine hypothetically for a moment if the ratio was 1 Bandhan share for 100 Gruh shares. Therefore, it is only logical to expect and to convince IT authority to concede to proportionate equivalence or else the grandfathering benefit passed by legislation would not accrue fully. Anything short of that would mean shortchanging an assessee on what has beet legally granted.

Justin Russel Pinto

Mr.

38 Points Posted on 06 February 2022

This is in response to Achhe Din' post of 08 September 2021 to Samantha J,:

Does Sec. 112A apply at all in this case? Let us say that I want to sell Gruh by such quantity that my capital gains do not exceed Rs. 1,00,000 in a particular financial year; so as to avoid (not evade) paying LTCG on the sale of shares. Is this within the ambit of the law?

Is this permissible? I would much appreciate some clarity.